Finning reports fourth quarter results

Feb. 25, 2010 – Finning International Inc. has reported fourth quarter 2009 results including revenues of $1.1 billion, earnings before interest and income taxes (EBIT) of $30 million and diluted earnings per share (EPS) of $0.10. Fourth quarter results included net non-operational charges of $0.02 per share ($0.07 per share in Q4 2008).   

For the full year 2009, the Company reported revenues of $4.7 billion, EBIT of $207 million and diluted EPS of $0.77. As expected, new and used equipment sales and rental revenues were down from 2008 levels in all operations. Product support revenues were comparable to 2008 levels, as strong parts and service revenue growth continued in the mining sector.

“The quarterly results were consistent with expectations,” said Mike Waites, president and chief executive officer of Finning International Inc. “Free cash flow continued to be very strong and totaled $494 million for the year. We are well on our way to our cost reduction goal of over $200 million, and combined, these accomplishments give us a great deal of flexibility and position us well for growth.” 

“Importantly, we are seeing signs of a recovery, led by mining. Quoting activity is strong, notably in South America, and our backlog has posted the first increase since 2008. More recently, we were very pleased to have secured the Kearl mining contract in Canada and the Letter of Intent from Codelco’s Ministro Hales project in Chile, under which equipment deliveries will commence in 2011,” concluded Mike Waites.